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  • FIRST POST
    debbiedebt
    Warning high interest card 39.9 APR
    • #1
    • 21st Jan 08, 8:26 PM
    Warning high interest card 39.9 APR 21st Jan 08 at 8:26 PM
    This is to warn everyone of this extremely high interest rate. I received an email - today copied below:-

    At Vanquis we think that more people should have the chance to have a credit if they want one. And that includes you - if your circumstances have recently changed, you've got little or no history, have had problems in the past, or just have a lower than average income.

    All of our Visa cards come with:

    - No annual fee
    - Up to 56 days interest free on purchases
    - Free additional cardholder
    - Free fraud monitoring - we'll warn you of any suspicious activity on your account
    - Chip & PIN technology for added security whenever you use your card
    - Visa is widely accepted in the UK and abroad
    - Convenient for paying online and over the phone
    - Friendly UK call centres
    - typical 39.9% APR

    Debt Free Date December June 2019

    GC January 0/180
Page 1
    • marshall2k
    • By marshall2k 21st Jan 08, 8:47 PM
    • 197 Posts
    • 502 Thanks
    marshall2k
    • #2
    • 21st Jan 08, 8:47 PM
    • #2
    • 21st Jan 08, 8:47 PM
    This card is not designed to be competitive on the APR front. It is meant for those that cannot get credit anywhere else due to perceived risk. Borrowing on it would be a bad move but using it and paying off every month will help someone with no/damaged credit history.
    • SiuLoong
    • By SiuLoong 21st Jan 08, 9:02 PM
    • 216 Posts
    • 134 Thanks
    SiuLoong
    • #3
    • 21st Jan 08, 9:02 PM
    • #3
    • 21st Jan 08, 9:02 PM
    In the same area are the Capital One 'Classic' card with an APR 34.9% and Barclaycard equivalent, also with a v high rate. The idea behind these cards is that they are available for people who would otherwise be refused credit.. i.e. bad or nonexistent credit rating. The high APR is because of the increased risk of these bad or unknown quantities. Whilst using a card like this to borrow money would be disastrous and never to be recommended, using it and paying off the full balance every month can get you started in terms of a credit rating and in time allow you to build a credit history that allows you to get better credit elsewhere.

    Quite rightly people should be aware of the rates, and only spend on the card if it can be fully paid off...
    • Paul_Herring
    • By Paul_Herring 22nd Jan 08, 11:25 AM
    • 6,044 Posts
    • 2,736 Thanks
    Paul_Herring
    • #4
    • 22nd Jan 08, 11:25 AM
    • #4
    • 22nd Jan 08, 11:25 AM
    Here we go again...

    http://forums.moneysavingexpert.com/showthread.html?p=2155978#post2155978
    Conjugating the verb 'to be":
    o I am humble
    o You are attention seeking
    o She is Nadine Dorries
  • sparkie45
    • #5
    • 22nd Jan 08, 11:38 AM
    • #5
    • 22nd Jan 08, 11:38 AM
    may be a bit thick but what does that mean in money terms



    cheers sparkie45
  • a11waysindebt
    • #6
    • 22nd Jan 08, 11:43 AM
    • #6
    • 22nd Jan 08, 11:43 AM
    No disrespect to any one,But people coming to the site that are new sometimes can't find old links concerning these issues.

    I my self have been told sometimes "there are threads concerning this subject" and then get a link dated back to 2006.
  • yorkie1980
    • #7
    • 22nd Jan 08, 1:06 PM
    • #7
    • 22nd Jan 08, 1:06 PM


    Debbiedebt, I've had Vanquis since June last year, have never paid a penny interest and even had a late payment charge refunded in full the only time I ever missed a payment.

    As Paul_Herring says, this is a common theme, and using the search facility at the top of the page would have brought more recent posts to your attention.
    It's good to be alert though and that you thought of sharing info with others
  • jimbo26
    • #8
    • 22nd Jan 08, 1:11 PM
    • #8
    • 22nd Jan 08, 1:11 PM
    may be a bit thick but what does that mean in money terms



    cheers sparkie45
    Originally posted by sparkie45
    It means if you pay off the full balance each month you don't pay a bean in interest. However fi you don't you get stung for quite a bit, far more than the mainstream cards.

    If you plan to pay off the card in full every month the interest rate is immaterial.
  • yorkie1980
    • #9
    • 22nd Jan 08, 1:12 PM
    • #9
    • 22nd Jan 08, 1:12 PM
    may be a bit thick but what does that mean in money terms



    cheers sparkie45
    Originally posted by sparkie45
    Hi Sparky, this website has an example calculator showing repayments - http://www.whatsthecost.com/creditCard.aspx

    I googled that site, so not sure how good it is, but hopefully it gives some idea.

    The golden rule is though, that if you don't borrow on Credit Cards, then the interest rate is insignificant!! Pay them off in full each month!!
  • yorkie1980
    Thanks jmbo26, you beat me to it!!
  • sparkie45
    cheers for the link been offered one loads of times from capital one at 34.9 apr didnt understand what it was think i will leave it


    cheers sparkie45
    • neverdespairgirl
    • By neverdespairgirl 22nd Jan 08, 2:18 PM
    • 16,076 Posts
    • 71,580 Thanks
    neverdespairgirl
    Hi - you are right, this would be a very poor card if you were going to have a balance sitting on it.

    But it does have other uses. Some people have a lot of trouble getting any credit at all - for example, they have no previous credit rating, they are young, they have had defaults etc in the past.

    This card is therefore useful to them because they'll give it to almost anyone. It is much easier to get than most CCs. So if you get one, and pay it off every month, it helps you build a credit record, showing that the payments are made every month.

    But with an APR like that, it shouldn't be used for borrowing at all, and ought to be paid off at once.
    • MABLE
    • By MABLE 22nd Jan 08, 7:06 PM
    • 2,891 Posts
    • 1,527 Thanks
    MABLE
    If you pay the balance off each month and yes some people do that, then it could be a very useful card to hold. I myself do not have one because I have an A1 credit rating but some poorer members of society may find it beneficial if they want to build up their credit history or rating etc.

    Also the apr quoted is alot cheaper than a door to door lender. So best not to knock it without looking at all the facts.
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